he CBI has filed a case against officials of ONGC, Rajahmundry, including former executive director D G Sanyal, then director (onshore) Ashok Verma, and ex-DGM (production) Arun Ratan Das and 10 others for alleged irregularities in a contract worth Rs 312 crore given in 2014 to a private company Deep Industries Limited for supplying Gas Dehyrdation Units.

The CBI, in its affidavit, said not much progress could be made in the enquiry and the Preliminary Enquiry (PE) was closed on July 15, 2015, on jurisdictional issue as the project was under the Maharashtra government.

Sources in the banking sector say once a case is classified as fraud, it becomes a case of criminal investigation. No fresh loans can be granted or other restructuring arrangements can be done with such entities.

Parliamentary Affairs Minister Chandra Mohan Patowary, replying on behalf of the home minister, made the announcement in the state Assembly here, and said the government was determined to root out corruption.

KPCL, which is headed by the chief minister Siddaramaiah, is under CBI investigation for allegedly ignoring joint venture conditions to give pecuniary gains to private partners after the corporation was allocated six coal blocks-—Kiloni, Manora Deep, and Baranj I-IV in 2003.